Direct Tax Revenue Grew 161% in 10 yrs; Hit 6.1% of GDP in FY23: CBDT

New Delhi, Jan 24 (KNN) The Central Board of Direct Taxes (CBDT) announced on Tuesday that direct tax revenue has achieved a milestone by reaching 6.1 per cent of the Gross Domestic Product (GDP) in FY23, propelled by robust growth and an expanding taxpayer base.

The direct tax-to-GDP ratio, which stood at 5.62 per cent in FY14, has steadily increased, reaching 6.1 per cent in FY23. This marks the highest ratio since the financial year 2000-01, as per readily available data.

CBDT disclosed in a statement that the net direct tax receipt of the Centre, adjusted for tax refunds, has surged approximately 161 per cent from FY14 to Rs 16.63 trillion in FY23.

Both corporate and personal income tax payers have contributed almost equally to this significant increase.

CBDT data revealed that five out of the six years leading up to FY23, direct taxes surpassed indirect taxes in contributing to the Centre's exchequer.

Tax deducted at source (TDS) emerged as the predominant mode of tax collection in FY23, standing at Rs 8.17 trillion out of the total gross direct tax receipts of Rs 19.72 trillion.

The number of income tax returns filed in FY23 reached 77.8 million, more than double the 38 million returns filed in FY14, as reported by the tax authority.

The cost of direct tax collection decreased from 0.57 per cent of total tax collection in FY14 to 0.51 per cent in FY23, reflecting increased efficiency through the adoption of data analytics and technology in tax administration.

(KNN Bureau)